Jade Power Trust (TSX: JPWR-UN) sold its renewable power portfolio

New Energy Update – December 16, 2022

Many of you were surprised to see a 99% loss in the portfolio and an unexpected cash balance in your accounts. We fixed the portfolio to reflect what’s going on.

This week Jade Power Trust (TSX: JPWR-UN) sold its renewable power portfolio to Enery Power Holdings. Enery is an Austrian-based renewable energy company. The deal closed for C$90.9 million. Out of that, C$5.5 million is in escrow. If you bought this stock, Congratulations! 

We currently have a 49% gain, thanks to the $3.35 per share special distribution payment we received. We expect to receive at least two more payments from the Trust. We don’t have the dates of those distributions yet, but they are coming.

You can read the full press release here.

We are going to continue to hold our position and wait for information on the next special distributions. But that $3.35 per share is cash in the bank. 

That’s an outstanding result, considering we only owned it for four months. It’s indicative of the market today. We saw other renewable power companies get acquired since June 2022. Aker Offshore Wind merged with its sister company Aker Horizons in June. We wanted to buy shares in Aker Offshore Wind, but it got taken over too quickly.

And what’s frustrating is that Aker Horizons isn’t listed on the U.S. or Canadian stock exchanges. If you can buy foreign listings and find it, let me know. I’d love to put that one in the portfolio. But right now, I don’t believe we can get shares here in the U.S.

It also bodes well for the future of our renewable power royalty company, Altius Renewable Royalties (TSX: ARR). Acquisitions like these continue to demonstrate the value of these renewable assets. And that will be reflected in the share price of royalty holders like Altius Renewable Royalties at some point. We just need to be patient.

We see renewable power as a definite investment opportunity in 2023. We are on the lookout for more companies like Jade Power, Aker Offshore Wind, and Altius Renewable Royalties.

You can expect to see more of these kinds of recommendations next year. 

As a housekeeping note, this will be the last weekly update for 2022. The Mangrove Investor team is going to take a little family time for the holidays. We’ll talk to you again after the New Year.

Sincerely,

Matt Badiali